Kiva- Microfinance

Kiva is one of the largest and most widely known players in the microfinance industry. Microfinance is the supplying of loans and other financial services to the poor. One of the reasons that I find microfinance far superior to simply donating money to a charity is that it allows the recipient to have access to a loan that they wouldn’t have access to. Currently, when someone wants to get a loan, they are required to go to a bank, where many entrepreneurs are turned down because of their lack of collateral or their poor credit score. Furthermore, Kiva allows poor individuals the chance to take out loans rather than asking for handouts from charities. Another interesting fact about microfinance is that these institutions tend to focus on women, which has helped to make women play a more prominent role in their communities.

Kiva works by disbursing money to a number of microfinance institutions around the world that approve and make loans to entrepreneurs in their respective areas. The microfinance institutions assist entrepreneurs in making profiles about their businesses and these videos are hosted on Kiva’s website where individuals around the world can go to choose who to make loans to. Over time, the loans are eventually repaid and your lender account is credited, at which point you can lend again to another entrepreneur. This program not only enables current entrepreneurs to grow their business, but also allows new businesses to take off. By empowering individuals and growing small business in underdeveloped countries Kiva is helping them move forward in a positive direction.

To participate simply log on to the Kiva website and start lending with a minimum loan of only $25!

Kiva's Website: www.kiva.org